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Geothermal Energy Status and Policy Review Geothermal energy status and policy review PART A Analysis December, 2013 1 Geothermal energy status and policy review PART A Analysis D 2.1 Gerdi Breembroek, Lydia Dijkshoorn, Paul Ramsak NL Agency December, 2013 Publisher: Coordination Office, Geothermal ERA NET Orkustofnun, Grensásvegi 9, 108 Reykjavík Tel: +-354-569 6000, The Geothermal ERA NET is supported by Email: [email protected] the European Union’s Seventh programme Website: http://www.geothermaleranet.is/ for research, technological development and demonstration under grant agreement ISBN: 978-9979-68-356-8 No 291866 2 Table of Contents Executive Summary 6 1 Background and methodology 7 2 Status of geothermal energy in the Geothermal ERA NET Countries 8 2.1 Highlights on national situation per country 8 2.2 Geothermal energy production 9 2.2.1 The trouble with the data 9 2.2.2 Direct utilisation 9 2.2.3 Electricity generation 11 2.3 Geothermal in current and future energy mix 11 2.4 Prospects 16 2.4.1 Direct utilisation 16 2.4.2 Electricity 17 2.5 Energy prices 19 2.5.1 End-use prices of electricity and gas 19 2.6 Prices of geothermal energy 20 2.7 Highlights, policy and prospects of national situation per country 21 2.8 Conditions for growth 25 2.9 Legal aspects 27 2.10 Where to find spatial data, monitoring and statistics? 30 2.10.1 Spatial data 30 2.10.2 Monitoring data 31 2.10.3 Statistics 32 3 Programmes on geothermal energy in the Geothermal ERA NET countries 33 3.1 Highlights of programmes and instruments relevant for geothermal energy 33 3.2 Highlights of public support and funding schemes 34 3.3 Summary per country 34 3.3.1 Switzerland 34 3.3.2 Germany 36 3.3.3 France 37 3.3.4 Hungary 38 3.3.5 Iceland 39 3.3.6 Italy 40 3.3.7 The Netherlands 41 3.3.8 Slovenia 42 3.3.9 Slovakia 43 3.3.10 Turkey 43 3.4 Feed-in tariffs/premiums 44 3.5 Strengths and weaknesses 45 3.5.1 R&D/demo programmes 45 3.5.2 Investment support / risk guarantee schemes 46 3.5.3 Feed-in tariffs 46 4 References 47 APPENDIX: LISt of contacts 48 3 List of Figures Figure 1 Produced geothermal heat in GWhth/year for different uses (2012) 10 Figure 2 Installed capacity for geothermal heat production in MWth (2012) 10 Figure 3 Electricity generation by country (2012). 11 Figure 4 Evolution of electricity production relative to the year 2008. 11 Figure 5 Final energy use for heating and cooling per capita and the role of geothermal and other RES (Renewable energy sources). 12 Figure 6 Role of geothermal heating and cooling as percentage of renewable heating and cooling for the years 2005-2010-2015-2020 by country. 13 Figure 7 Electricity final use per capita and the role of geothermal and other RES (Renewable energy sources). 14 Figure 8 Role of geothermal electricity as a percentage of total RES end-use electricity for the years 2005-2010-2015-2020 by country. 15 Figure 9 Ambitions for growth of direct heat utilisation, data for 2012 (total) and 2020. 16 Figure 10 Number of geothermal district heating systems/networks in Europe in 2012 and expected growth through 2015 [6] 17 Figure 11 GWhel/year geothermal power production in ERA NET countries. 17 Figure 12 Installed capacity (MW) per country and outlook for 2016, according to EGEC [7] 18 Figure 13 End-use electricity prices in participating countries 19 Figure 14 End-use natural gas prices in participating countries. 19 Figure 15 Indicative production prices of heat for direct utilisation. “IEA” prices from [10], differentiated between district heat and greenhouse utilisation. 20 Figure 16 Indicative production prices for electricity. For Iceland: end-use prices; For the Netherlands, combined heat and power assumed; price per “total kWh”. 21 Figure 17 Feed in tariffs in various countries, for electricity (blue) and heat (red). 44 List of Tables Table 1 Highlights on national situation per country 8 Table 2 Highlights of policies and prospects per country 22 Table 3 Perceived hurdles to growth of geothermal energy utilisation per country 25 Table 4 Legal aspects for geothermal energy per country 27 Table 5 Spatial data sets, organisations and availability 30 Table 6 Monitoring activities by country 31 Table 7 Sources of statistical information on geothermal by country 32 Table 8 Overview of public support and funding by country 34 4 Table 9 Programmes on geothermal energy in Switzerland 34 Table 10 Public support and funding for geothermal in Switzerland 35 Table 11 Programmes on geothermal energy in Germany 36 Table 12 Public support and funding for geothermal in Germany 36 Table 13 Programmes on geothermal energy in France 37 Table 14 Public support and funding for geothermal in France 37 Table 15 Programmes on geothermal energy in Hungary 38 Table 16 Programmes on geothermal energy in Iceland 39 Table 17 Public support and funding for geothermal in Iceland 40 Table 18 Programmes on geothermal energy in Italy 40 Table 19 Public support and funding for geothermal in Italy 41 Table 20 Programmes on geothermal energy in the Netherlands 41 Table 21 Public support and funding for geothermal in the Netherlands 42 Table 22 Programmes on geothermal energy in the Netherlands 42 Table 23 Public support and funding for geothermal in Slovenia 42 Table 24 Public support and funding for geothermal in Slovakia 43 Table 25 Programmes on geothermal energy in Turkey 43 Table 26 Public support and funding for geothermal in Turkey 43 Table 27 Perceived strengths and weaknesses of national R&D and demo programmes 45 Table 28 Perceived strengths and weaknesses of national investment support and risk guarantee schemes. 46 Table 29 Perceived strengths and weaknesses of national investment support and risk guarantee schemes. 46 Abstract The Geothermal ERA NET has brought together and analysed the status of and the policies concerning geothermal energy in its participating countries, including Slovenia, that has joined the consortium in a later stage. The report is split between Part A Analysis and Part B Questionnaires. Part A is the current report and is publicly available. Part B contains the questionnaires of all countries. Please contact the relevant country contact(s) (see Appendix 1) if you want to use these 5 Executive Summary The Geothermal ERA NET has brought together and analysed the status and the policies concerning geothermal energy in its participating countries, including Slovenia, that has joined in as an associated partner in a later stage. The report is split between Part A Analysis and Part B Questionnaires. Part A is the current report and is publicly available. Part B contains the questionnaires of all countries. Please contact the relevant country contact(s) (see Appendix 1) if you want to use these. The Geothermal ERA NET focuses on direct use and higher enthalpy uses of geothermal energy. The consortium does not consider shallow geothermal energy for geothermal heat pumps, which is a different market with its own characteristics and challenges. Geothermal energy utilisation accounts for 66% of energy utilisation in Iceland, and one could say that the potential that this energy source holds for this country is largely deployed. Italy also has a significant geothermal production. It ranks as fifth country in the world for geothermal electricity production. After Turkey, Iceland and Italy, Hungary is ranked at 4th place regarding installed geothermal direct use in Europe. For all other participating countries, geothermal energy is an energy source with potential. With the exception of Iceland, all countries have an ambitious agenda for an increase of the market for geothermal energy. In all countries except for the Netherlands and Slovenia, this includes a significant growth in electricity production with geothermal energy. Up to 2020, the Netherlands will focus on direct use. In all participating countries, there are policy instruments in place to forward geothermal energy utilisation. This includes R&D efforts, but in some countries, there are also instruments to address the geological risk in the form of soft loans or guarantee funds. Also, most participating countries have a feed-in-tariff in place, for renewable energy production. Often, this tariff is only applicable to electricity generation, but in France and the Netherlands, there is also support for renewable (district) heat. This review also discusses other relevant issues, such as the availability of geological data, legislation and statistics. The Geothermal ERA NET sees much scope for collaboration on joint activities, such as joint research activities and joint activities to remove barriers for further market growth. 6 1 Background and methodology The Geothermal ERA NET brings together energy agencies and ministries in Europe. Their aim is to cooperate on the topic of geothermal energy, to forward the joint goals of an increased use of this renewable energy source. Member countries are Iceland (coordinator), Switzerland, Germany, France, Hungary, Italy, the Netherlands, Slovakia and Turkey. Slovenia is associate member. The work is organised in work packages. This report is part of work package 2 „Information exchange on national incentives and status of geothermal energy“. It presents the status and policies concerning geothermal energy in the member countries. Agency NL is responsible for work package 2. The contents of this report has been brought together by member countries through questionnaires. These questionnaires had three main topics: - the status and policies concerning geothermal energy in member countries; - description of national programmes related to geothermal energy; - description of national support schemes. Besides information from the questionnaires, the authors included information from relevant international organisations, such as IEA, IEA IGA and EGEC.
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